product development

Question 1

how can businesses broaden their product portfolio

Answer 1

adding products to an existing range by developing new products based on the current ones e.g new flavours of something

different products from the current

Question 2

designing and producing new products is known as

Answer 2

diversification - reduces the risk that a decline in sales of one product will harm the business

Question 3

benefits and risks of developing new products

Answer 3

benefits - increase overall sales - extend life cycle of existing products - may appeal to a new market segment - can initially charge higher prices over competitors

drawbacks - costly and time consuming - business risk ruining their rep if product is of bad quality

Question 4

what is good about having a good brand image

Answer 4

easily recognised and liked - more sales

Question 5

USP

Answer 5

unique selling point

Question 6

3 elements of the design mix

Answer 6

appearance - stand out
cost - good design means low manufacturing costs meaning more profit
function - fit for purpose - unique features